I am sure that you must have seen or heard about people who had a great business plan but their plan just remained on paper and it never materialized because of a heavy startup cost. It is one of the major problems, which entrepreneurs around the world face, and it is because of this very problem that most of the ideas die in mind, while the rest just manage to come to paper and after that, they remain on the desk.
It is a fact that great ideas require heavy startup costs the unavailability of which makes it hard for the entrepreneurs to put their plan into action. However, there is a not-so-wise way of doing things and there is a smart way of doing things. I’ll tell you something about the latter way of doing things which will surely help you in overcoming the startup costs problem when starting a business.
As cliché as it may seem to you, outsourcing is by far the best method of cutting startup costs. There are numerous ways in which outsourcing can help you reduce all types of costs associated with starting a business. No matter whichever process of the business is outsourced or whichever department a business wants to work virtually, it saves on infrastructure building costs, human resource costs, equipment costs, maintenance costs and all kinds of other running costs. Therefore, outsourcing is by far the best way of starting a business while worrying less about the startup costs. However, pertaining to outsourcing, the one thing that every startup business must do is proper research to ensure that the outsourcing service provider selected is the best one and does not compromise on quality.
The second way with which you can cut your startup costs substantially is by exchanging services. There are always businesses that will be interested in your services, and you will be interested in their services to start the business. Therefore, instead of formally approaching them and becoming their client, you can offer them exchange services, as per which they will help you in fulfilling your startup need and in return you can compensate them by providing them your services. Ergo, you must consider exchanging services as a method of reducing startup costs and must opt for going for an agreement if needed in this regard.
Start From Home:
The third biggest startup cost that hinders in the way of starting a business is the establishment of a proper office in some commercial building. The purpose of an office is where your customers and clients can reach you, therefore, I ask you the question that can’t your home be your office? The wise way of starting a business is that you start it from home, this way you will be obviously saving a lot of costs that will be spent on renting a space and then making it office-like. Therefore, instead of being formal and going for a formal setup, go with a home office and as far as my knowledge is concerned, home offices are an in thing and there is nothing odd about them.
Now it’s Your Turn!
Did you also have to face startup costs problems? How did you overcome those problems? Which cost-cutting solution worked for you the best and why? Do you favor any of the methods of reducing the startup cost mentioned above? I wait to read your thoughts in the comments section.
Very Nice Post about Business! I love to read Nice post related to Business ! Nate, I’m just about to start my own Business & for that I need to read more for Business.
Hi Nate, you just nailed it again, what a mind changing tips for cuting startup costs
in business, i don’t have business for now so, i can’t answer the questions you asked.
I never thought about exchanging business services with someone else who also has an online business. Great idea!
Thank for sharing!
These are some great tips on how to cut start-up costs for your business. I have had issues with that and had to budget the funds to keep my business going. These are some great ideas and doesn’t hurt the pocket either.
I love the idea of working from home!
Good ideas to share. At this point I don’t want to consider outsourcing but bartering with others is a good idea I hadn’t thought of.
Thank you, Monna
I did outsource some things and it did save me time which equals money. My problem is that I always think I can do anything myself. While that may be true, sometimes someone else can do it faster. I have found many vendors at fiverr.com who were able to accomplish some tasks much quicker than I could scale the learning curve to do myself. These were great tips, Nate
Working from home, I had very little start up costs. Basically I had everything I needed. Of course, as my business has grown there have been other necessities I needed, but to get started I only had need of my computer and the internet.
Exchanging services, I really like that, Nate. Much like the old bartering system! One of my tips for reducing costs is to try and source as many free things as you can initially. It isn’t always necessary to have all the bells and whistles when you start out. Yes, many of them make the whole thing easier, but if you are on a limited budget you really have to make do with what is out there that you can afford, or free is you can’t.
Enjoy the journey.
This is an easy topic for me to talk about. I always wanted to have my own business. But I also hated having to leave the house to go to work. Think I’m an introvert? lol So, the obvious solution was to start my own business from home, which so many people are turning to these days. I wanted to have a boutique-type store. But I didn’t want to have people coming into my house. Again, I’m introverted, right? My solution was to start an online retail business from home! Not much start-up cost so far…. But I needed stock, which costs a lot of money. How did I get around that! Drop-shipping, of course. No need to buy anything right away. After I got my business going a little bit and started to accumulate funds, then I could buy things and stock them in my home. Piece of cake. Thanks, Nate, for the opportunity to share my story. 😉
Great tips; and I’ve used them all and still do.
Very helpful tips. I think Jeanne (in comments) hit the nail on the head drop shipping is a great way to start an online retail business. Good way to get your feet wet and build a loyal client base.
We were out test driving cars this weekend and the auto guy is a digital arts graduate from college. In his spare time, he does photography… so, after telling him what I did (coaching), we agreed to barter a session or two for new headshots, etc.
Sometimes you just stumble into these thing!
Keep up the great work, Nate!
We are lucky to write and publish in the era of books and POD. No cost and lots of return. I did barter pilates sessions ($300) for the book covers. Too many bad experiences on Fiverr.
Start up is relatively minimal with most web based businesses. Really, the biggest things are web hosting and domain names. Set up and logos, etc. can easily be outsourced on Fiverr (unless you are really picky). I tend to do things myself because I am really picky!
Enjoyed this post Nate, got here through the FB Article Writing Challenge group
My business is a stay at home business (direct sales). The cost that I had to pay I have already made it back.
Startups can save money by outsourcing. Our start up is focusing on working on the outsourced job from Europe and America. For our clients this not just saves the money but it is also helpful for getting quality work done.
Thanks for the share Nate
Nate these are great tip, I shared for you in the business leader group. I also agree with the start up investment. I find that many people do not understand that nothing is free, investing financially in yourself is just as important on the internet as it is in the outdoor markets. Thanks for this blog.
Starting from home has been a great cost saver for me Nate. Office rentals are just ridiculous and my kind of business is actually ideal for home as we do not get walk-in clients as such.
Do the home bit 😉 Power tips Nate. Lean out the processes by going bare bones. I got rid of cable, my gym membership and other bills and I worked from home too to get off of the ground. Thanks man!
Start small .. stay small … don’t even try to pretend you are anything other than what you are xxx
I have used fiverr couple of times and it was good. I may need to do outsourcing in the future. cheers
Great article Nate!!! Loved how you explained things…also I would not have thought outsourcing would be a way to cut cost. I just might have to look into outsourcing and what I would want to outsource. I also signed up for you e-book!!! Can’t wait to get it and start reading.
Great post ,Nate
I like bartering and do it ,outsourcing as well,
good thing is working from home does not cost as much as opening a business .
Thank you for the good information
Great points Nate – I think outsourcing and swapping resources can play a good place in starting a business.It all depends on creating the right plan to maximize available skills.
Working from home is a fine idea and will definitely cut costs.But I would recommend creating a separate ‘work’ area.Especially if you need work space and stock space as well as an office because businesses have a habit of growing and taking over … ( I speak from experience here!)
Great tips Nate and definitely start by working from home. If you are the younger generation then once established rent a small office somewhere as much less distraction. Thanks for sharing.
I like your suggestion of exchanging services! There’s always a solution. Thatks!
Great points. Although I think that all 3 are good ideas and will probably have the effect you one is looking for, I feel that the 2nd and 3rd options you have were top notch. Working from home can help cut costs, and there is no shortage of places to rent office space for a day.
Thanks for sharing..! Honestly, it is the most favorite topic which I ever read about the small business. It is short 3 tips but so useful for small business own to save the starting cost of their business.
To understanding about using outsources, looking for some partnering for exchange the resources, and saving admin cost such as office expense are really good ideas for reducing business start up cost.
I love what you wrote here..!
I agree with all of these. Constant connectivity is now making it so much easier for startups to thrive because it cuts out plenty of overhead. Outsourcing can be quite hit and miss, though. It’s very rare to find freelancers who aren’t flaky, so when you do find one, you have to really hold on to him/her.